CYPRUS: Estia scheme for distressed homeowners to start in September

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The state funded Estia scheme to help borrowers with toxic mortgages will launch in September to help reduce Cyprus’ bad debt mountain.


Estia is a special government scheme drawn up by the Ministry of Finance to enable struggling borrowers to repay their loans by subsidising part of the repayment instalments of a restructured loan.

Government Spokesman Prodromos Prodromou said the Cabinet also approved a €20 mln Investment Fund, Prodromou to foster business innovation and creativity.

It will provide an alternative source, so that the banking sector is not the only source of funding for innovation.

Prodromou said that the initial capital of €20 mln may be strengthened by other Investment Funds. This mechanism will reinforce development efforts and in particular innovation and start-ups.

He said the state will not participate in the Fund’s decision-making, which will operate purely in accordance with business standards.

As for ‘Estia’ Prodromou said that the Council of Ministers was informed that the scheme will be properly launched on September 2, while the Ministry of Labour is ready to receive applications by those interested to take part.

He said that Cyprus recorded a positive growth rate during the first half of 2019, despite some slowdown in comparison to the years of recovery that preceded.

Prodromou said that GDP growth continues at 3.3%, three times higher than the rest of the eurozone.

He said unemployment stands below 7% and there is a continuous downward trend, which endorses the government target of reaching full employment conditions by next year.